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Dr. Martens Modern Slavery and Transparency in the Supply Chain

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PG1 AND TRANSPARENCY IN THE SUPPLY CHAIN STATEMENT 2018/19 MODERN SLAVERY AND TRANSPARENCY IN THE SUPPLY CHAIN STATEMENT FOREWORD FROM OUR CEO PG2 AT DR. MARTENS, WE BELIEVE IN INTEGRITY.integrity. DURING THE PAST YEAR WE: WE ARE FAIR,fair, WE DO THINGS THE RIGHT WAY, + Updated our policies to strengthen our + Expanded our modern slavery training to key AND WE DO NOT CUT CORNERS. THESE VALUES expectations from our employees and suppliers in our supply chain values our suppliers MEAN WE DO NOT ACCEPT MODERN SLAVERY + Became signatory of Better Retail Better IN ANY FORM. NO ONE SHOULD BE FORCED TO + Established a confidential employee hotline World, an initiative supporting global efforts WORK AGAINST THEIR WILL OR HAVE TO PAY to achieve the UN Sustainable Goals + Extended our CSR audits to the lower tiers of FOR A JOB, BUT TODAY MILLIONS OF PEOPLE our supply chain GLOBALLY ARE VICTIMS OF MODERN SLAVERY. AS A BUSINESS, WE ARE committedCOMMITTED TO NEXT YEAR, WE WILL CONTINUE TO: RESPECTING HUMAN RIGHTS AND IDENTIFYING, + Map risks in our supply chain and + Collaborate further with others in INVESTIGATING, ENGAGING AND REMEDIATING own operations the industry ANY ISSUES UNCOVERED. + Provide more training to our own employees This document builds on last year’s statement (you can find it here) and explains the steps We are pleased to share our third modern slavery we are taking at Dr. Martens to prevent, detect and respond to slavery in our business and statement, which gives an update on our previous supply chain. This statement covers Dr. Martens Airwair Group Ltd. and other group companies. This statement is made pursuant to Section 54 of the Modern Slavery Act 2015 and California achievements and details of further action we Transparency in Supply Chains Act of 2010 (SB 657) and covers the activities between want to take in 2019. October 2017 and January 2019. KENNY WILSON CEO, Dr. Martens MODERN SLAVERY AND TRANSPARENCY IN THE SUPPLY CHAIN STATEMENT CONTENTS PG3 PG 4 ABOUT US PG 5 OUR SUPPLY CHAIN PG 6 OUR COMMITMENTS AND POLICIES PG 8 OUR FOCUS AREAS PG 10 COLLABORATION PG 11 PROGRESS AT A GLANCE PG 12 WHAT IS NEXT? MODERN SLAVERY AND TRANSPARENCY IN THE SUPPLY CHAIN STATEMENT PG4 WHAT IS ‘MODERN SLAVERY’? HIGHLIGHTS OF 2018: The Ethical Trade Initiative refers to modern slavery as an umbrella term that + Strengthened our policies by introducing a new Migrant Worker Policy and updated includes: forced labour, bonded labour, human trafficking and slavery. The our Supplier Code of Conduct. term “modern” is used to distinguish the complexity of today’s slavery from historical slavery associated with the legal possession of one person by another. + Incorporated human rights and ethical trade into our business Code of Conduct (DOC-trine). ABOUT US + Conducted compliance audits further Dr. Martens is a footwear brand that was established in Wollaston, UK in 1960, upstream in our supply chain. and has had a manufacturing unit there ever since. Our global head office is + Extended our contractual requirements in Camden, London. with service contractors to include compliance with modern Our products are sold in 243 Dr. Martens branded stores located all around the world, of which 108 of them are owned slavery commitment. by us. We also sell through wholesale and via our website, which ships internationally. In 2018, our group revenue was £348.6m. We employ over 2000 people directly who are based in our stores, + Expanded modern slavery training to offices and warehouses. our key finished goods and raw material suppliers in China. Location of employees Stores + Became a signatory of Better Retail Better World to support global efforts UK Head office London 10.79% USA office 5.29% Owned stores 108 to deliver UN SDG 8.7 calling for the UK Factory & Office Wollaston 7.14% USA DC 2.95% Franchises 135 eradication of forced labour and UK DC 2.85% USA Stores 14.84% Concessions 57 modern slavery. EMEA office 0.60% Asia Office 7.29% Pop-Up 11 EMEA & UK Stores 40.76% Asia stores 7.49% MODERN SLAVERY AND TRANSPARENCY IN THE SUPPLY CHAIN STATEMENT | ABOUT US OUR SUPPLY CHAIN PG5 WHERE WE PRODUCE AND SOURCE OUR PRODUCTS COMPONENT SUPPLIERS SERVICE CONTRACTORS (1ST TIER SUPPLIERS) (2ND TIER SUPPLIERS) We are a footwear brand, which manufactures and We also work directly with a We also purchase services, sources footwear, clothing and accessories. Our large number of our material consumables and marketing owned and operated footwear factory is located in and component suppliers, materials from various Wollaston, UK. including leather and textiles, contractors. These which are located across include labour agents in We source the majority of our finished footwear, clothing and accessories from factories in China, Thailand, Vietnam, Lao, Portugal and the UK. Asia, Europe and our warehouses, logistic There are more than 25,000 workers in our 1st Tier factories. South America. operators and not-for-sale product suppliers. Where possible, these suppliers are nominated by us, which allows us to We are in the process of mapping and have better oversight and controls of the assessing the risk of the supply chain of materials used in our products and the our operations in our headquarters and working conditions. regions. While we continue mapping, we have introduced a modern slavery clause in our new contract agreements. Where contracting on supplier’s terms, we will negotiate compliance with modern slavery commitments. MODERN SLAVERY AND TRANSPARENCY IN THE SUPPLY CHAIN STATEMENT | OUR SUPPLY CHAIN OUR COMMITMENTS AND POLICIES PG6 SUPPLIER CODE OF CONDUCT ANTI-SLAVERY AND HUMAN TRAFFICKING POLICY EXISTING POLICIES: Our suppliers must adhere to and are audited upon our As stated in our previous + Updated our Supplier Code of Conduct (to include Subcontractor and Supplier Code of Conduct report, to ensure that our own Homeworker Policy) (you can find it here), which employees are aware of their has been in place since 2006. obligations under the Modern + Anti-Slavery and Human Trafficking Policy Slavery Act, we introduced It has been updated annually to reflect best practices. In 2018, we further updated an Anti-Slavery and Human NEW IN 2018: our Supplier Code of Conduct to include Trafficking Policy in 2016. our Subcontractor and Homeworker Policy, Migrant Worker Policy which was originally developed as a stand- We conduct modern slavery awareness alone policy. We also included greater detail training on a regular basis for our relevant Doc-trine (business Code of Conduct) to help suppliers better understand what constitutes modern slavery/forced labour. employees, including those at our sourcing Our Supplier Code of Conduct is based on offices in Asia. Alongside this, we wanted the Ethical Trading Initiative’s Base Code, our employees to have the opportunity and international norms and industry standards. ability to speak up. In 2018, we introduced a confidential hotline as an additional means This year, in addition to sharing our for employees to raise concerns relating policies with all of our first tier suppliers, to human rights, modern slavery, or any we extended this to our key material and other area covered in our business Code of component suppliers, such as tanneries and Conduct (DOC-trine). outsole suppliers. MODERN SLAVERY AND TRANSPARENCY IN THE SUPPLY CHAIN STATEMENT | OUR COMMITMENTS AND POLICIES PG7 MIGRANT WORKER POLICY THE DOC-trine Migrant workers in supply In addition to updating our Supplier Code of Conduct, we have also introduced a chains are more vulnerable global code of business conduct called The DOC-trine which raises awareness and to modern slavery because expectations amongst our employees regarding human rights and modern slavery. they are unlikely to raise grievances with their employers or the authorities – especially if they are undocumented. This is a shared concern within the industry and requires a collective and collaborative approach to tackle this issue. This year we introduced a Migrant Worker Policy and implementation guidelines (which you can find here). These are based on the Dhaka Principles, which were developed by the Institute of Human Rights in Business (IHBR) and are based on international best practices, which address the issues migrant workers may face. We introduced these specific policy requirements across SPEAK UP all our key suppliers, focussing first on the suppliers who are based in countries where We have introduced a confidential hotline as an additional means for Dr. Martens employees to raise concerns relating to there is a higher risk of migrant workers. human rights, modern slavery, or any other area covered in our business Code of Conduct. MODERN SLAVERY AND TRANSPARENCY IN THE SUPPLY CHAIN STATEMENT | OUR COMMITMENTS AND POLICIES OUR FOCUS AREAS PG8 Non-footwear suppliers, which represent around 3% of our total production value, include manufacturers producing our leather and textile accessories, bags 1. SUPPLY CHAIN and garments. RISK ASSESSMENT As a result of our efforts, we have seen: + 1st Tier: Compliance audits extended to non-footwear suppliers. Suppliers in China strengthen their own control mechanisms around recruitment of agency workers + 2nd Tier: Fully mapped component in order to verify employment conditions, as well and material suppliers and extended as to ensure required wages are paid. compliance audits to key component and material suppliers such as tanneries and Suppliers in Thailand are now either employing outsole manufacturers. local staff or directly recruiting migrant workers instead of using recruitment agencies, which has resulted in greater protection of worker rights. 2. CAPACITY BUILDING: Increased transparency from suppliers regarding Modern slavery training to Chinese workers’ wages, supporting the elimination of footwear and key component suppliers as unauthorised monetary deductions. well as our sourcing team who are based SUPPLY CHAIN RISK ASSESSMENT in China. In addition to the compliance audit risk In 2017 we carried out a 2nd Tier material and 3.
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